Exporters relieved to hear STJ decision to ease up on ‘drawback’ regime taxes

Exporting companies were relieved recently to hear the decision made by the Superior Court of Justice (STJ). The ministers defined that the late payment penalty, in the case of taxpayers who lost the tax benefit of the so called “drawback” regime, can only be applied after the deadline for payment of the required taxes – that is, 30 days after the expiration of the commitment to export .

Drawback temporarily suspends taxes on imported inputs used in the production of goods destined for export. However, if the sale is not carried out within a period of up to two years (one year extendable for another one), the exporter is obliged, by law, to collect the suspended taxes, with charges.

With this decision, two years have been gained in relation to what the IRS had been demanding previously when it demanded that the fine should be applied from the moment the input was imported.

The understanding came at a difficult time for exporters. Many companies are missing the deadline for using this tax benefit because of the pandemic, which closed borders and made it difficult to fulfill contracts with clients abroad.

The most urgent need, according to the Brazilian Foreign Trade Association (AEB), is that the deadline for using drawback be extended.  In 2020, the federal government allowed the extension. This year, there is a proposal for a new extension, which is still pending in Congress (Bill No. 1232/2021).

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/legislacao/noticia/2021/09/17/exportador-vence-no-stj-disputa-sobre-drawback.ghtml

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